Attached files
file |
filename |
EX-10.01 - FORM OF SUBSCRIPTION AGREEMENT - Topaz Resources, Inc. | ex10-01.txt |
EX-10.02 - FORM OF DEED OF TRUST, SECURITY AGREEMENT, AND ASSIGNMENT OF PRODUCTION - Topaz Resources, Inc. | ex10-02.txt |
EX-10.06 - RMJ SUBSCRIPTION AGREEMENT- DENTON WELL - Topaz Resources, Inc. | ex10-06.txt |
EX-10.11 - ASSET PURCHASE AND SALE AGREEMENT - Topaz Resources, Inc. | ex10-11.txt |
EX-31.2 - CFO SECTION 302 CERTIFICATION - Topaz Resources, Inc. | ex31-2.txt |
10-K - ANNUAL REPORT FOR THE YEAR ENDED 12-31-11 - Topaz Resources, Inc. | g4971a.txt |
EX-4.03 - FORM OF NOTE - Topaz Resources, Inc. | ex4-03.txt |
EX-32.2 - CFO SECTION 906 CERTIFICATION - Topaz Resources, Inc. | ex32-2.txt |
EX-32.1 - CEO SECTION 906 CERTIFICATION - Topaz Resources, Inc. | ex32-1.txt |
EX-4.04 - FORM OF PROMISSORY NOTE - Topaz Resources, Inc. | ex4-04.txt |
EX-4.02 - FORM OF STOCK GRANT AGREEMENT - Topaz Resources, Inc. | ex4-02.txt |
EX-31.1 - CEO SECTION 302 CERTIFICATION - Topaz Resources, Inc. | ex31-1.txt |
EX-4.01 - FORM OF WARRENT - Topaz Resources, Inc. | ex4-01.txt |
EX-14.1 - CODE OF ETHICS - Topaz Resources, Inc. | ex14-1.txt |
EX-10.10 - POLAR PARTICIPATION AGREEMENT - Topaz Resources, Inc. | ex10-10.txt |
EX-10.09 - EEI AGREEMENT TO PURCHASE AGREEMENT - Topaz Resources, Inc. | ex10-09.txt |
EX-10.05 - RMJ SUBSCRIPTION AGREEMENT- WITCHITA WELL - Topaz Resources, Inc. | ex10-05.txt |
EX-10.07 - VIEJO LETTER AGREEMENT - Topaz Resources, Inc. | ex10-07.txt |
EX-10.03 - RMJ SUBSCRIPTION AGREEMENT- MONTAGUE WELL - Topaz Resources, Inc. | ex10-03.txt |
EX-10.08 - EEI PURCHASE AGREEMENT - Topaz Resources, Inc. | ex10-08.txt |
Exhibit 10.04
SUPPLEMENTAL
SUBSCRIPTION AGREEMENT
FOR
BROWNING #2 WELL/UNIT AND
BROWNING LEASE
(MONTAGUE COUNTY, TEXAS)
Topaz Resources, Inc.
1012 N. Masch Branch Road
Denton, Texas 76207
ATTN: Mr. Edward J. Munden, Chief Executive Officer
Dark Horse Operating Co., L.L.C.
P.O. Box 2184
Denton, Texas 76202-2184
ATTN: Mr. Robert P. Lindsay and Mr. S. Rand Stinnett, Managers
RE: Oil, Gas and Mineral Lease, dated July 15, 2005, between Browning
Children's Management Trust, Lessor, and Dark Horse Operating Co.,
L.L.C. ("DHOPCO"), Lessee, a memorandum of which is recorded in Volume
355, Page 507, Real Records of Montague County, Texas (the "Lease"),
covering Lessor's right title and interest in and to a certain
1,187.75 acre, consisting of five (5) distinct tracts, as more
completely described therein (as amended); Purchase and Sale of
Working Interest(s) in Browning #2 well/unit (API #42-337-34339) on
non-communitized Tract Three thereof (Elias Spray Survey, A-672,
Montague County, Texas), along with undivided working interest in
additional leasehold
Gentlemen:
Reference is made to that certain written Subscription Agreement for
Browning #2 Well/Unit (the "Agreement"), dated September 21, 2010, between the
undersigned subscriber or purchaser (the "WI Purchaser"), party of the first
part, and Topaz Resources, Inc. ("Topaz") and Dark Horse Operating Co., L.L.C.
("DHOPCO"), parties of the second part, relating and pertaining to the sale to
WI Purchaser of an aggregate twenty five percent (25.0%) working interest,
consisting of an eighteen and three quarters percent (18.75%) attributable net
revenue interest, in the above-described Browning #2 well (API #42-337-34339) in
the Elias Spray Survey, A-672, Montague County, Texas (and the
"to-be-established" included and surrounding forty (40) acre oil, gas and
mineral leasehold estate)(such well and 40 acre unit being referred to therein
and hereinafter as the "WELL"). A true and correct copy of said Agreement is
attached hereto as Exhibit "A" and incorporated herein by this reference. Topaz,
as the current option holder and financier of the effective working interest in
the WELL, and DHOPCO, as the operator of the WELL and record title owner of the
Page 1 of 8
WELL (and the working interest leasehold on undivided interests in Tracts Two,
Three, Four and Five of the Lease), are desirous of WI Purchaser's financial
participation not only in the WELL but, in addition, in the ownership and
development of the currently-held portions of the Lease, on a promoted basis
consistent with the Agreement, as set forth herein. This instrument (hereinafter
the "Supplement") is intended to modify, expand and supplement the Agreement to
reflect the agreement(s) of the parties as to the Additional Leasehold (as
defined below). In consideration of the mutual promises contained herein and the
performance(s) and payment(s) described in this Supplement, and for
consideration(s) independent of the Agreement, the receipt and sufficiency of
which are hereby acknowledged, WI Purchaser, Topaz and DHOPCO agree (and hereby
supplement and amend the Agreement) as follows:
14. DEFINITION/BACKGROUND ON ADDITIONAL LEASEHOLD. DHOPCO is the current
record owner (subject to Topaz's option to acquire the subject working interest)
of a leasehold working interest in and to Tracts Two, Three, Four and Five of
the Lease which, based upon extensive prior title work by DHOPCO, can be
described in chart-form (the "Chart") as follows:
Net Acres owned Net Acres Net Acres owned
or controlled Leased by or leased to
Tract # Gross Acres by Trust to DHOPCO third parties
------- ----------- -------- --------- -------------
1 220.000 220.000 0 220.000
2 270.750 203.062 203.062 67.688
3 500.000 500.000 490.000* 10.000**
4 100.000 25.000 25.000 75.000
5 97.000 48.500 48.500 48.500
-------- ------- ------- -------
TOTAL 1,187.75 996.562 766.562 421.188
======== ======= ======= =======
----------
* = Includes 30 acres of the 40 acres comprising the WELL (and WELL Acres
defined below)
** = Representing the 25.0% working interest being subscribed/purchased by WI
Purchaser under the Agreement
For purposes of this Supplement, the following definitions will apply:
WELL Acres: As used herein, the term or phrase "WELL Acres" shall mean and refer
to the "to-be-established" forty (40) acre unit within Tract Three of the Lease
which surrounds and is attributable to the Browning #2 Well (consistent with the
designation/definition in the Agreement), which (a) WI Purchaser has subscribed
to a 25.0% working interest therein, and (b) WI Purchaser will be paying,
pursuant to a pending AFE, for included and proportionate acreage/leasehold
costs, consistent with the Agreement.
Tract One: As used herein, the term or phrase "Tract One" shall mean and refer
to the 220 acres of land, more or less, described and designated as Tract One in
Page 2 of 8
the Lease, the leasehold working interest thereon being previously assigned by
DHOPCO to a third party (and in which neither DHOPCO nor Topaz currently claim
or own a record working interest).
Non-Tract One Acres: As used herein, the term or phrase "Non-Tract One Acres"
shall mean and refer to Tracts Two, Three (except for the Well Acres), Four and
Five as identified in the Lease, comprised of 270.75 acres, 460.0 acres, 100.0
acres and 97.0 acres, respectively, more or less (totaling 927.75 gross acres of
land, more or less).
Base Acreage Price: As used herein, the term or phrase "Base Acreage Price"
shall mean and refer to the sum of ONE THOUSAND FIFTY AND NO/100 U.S. DOLLARS
($1,050.00) per net mineral acre of leasehold.
Present Additional Leasehold: As used herein, the term or phrase "Present
Additional Leasehold" shall mean and refer to the DHOPCO leasehold believed to
be leased by virtue of the Lease in the Non-Tract One Acres, presently
calculated to consist of 736.562 acres (column 4 in the Chart LESS the 30 acres
attributable to the WELL Acres). Such Present Additional Leasehold shall have an
associated net revenue of seventy five percent (75.0%).
2. ADDITIONAL WORKING INTEREST OFFERING. WI Purchaser, subject to the
acceptance of the Subscription hereunder, agrees to purchase a working interest
in and to the DHOPCO/Topaz Lease on the Non-Tract One Acres from DHOPCO/Topaz as
follows:
(a) WI Purchaser will purchase from DHOPCO and Topaz an undivided five
sixteenth (5/16th) or 31.25% of the Present Additional Leasehold working
interest in the WELL, subject to the equivalent or proportionate promote or
carrying obligation in favor of Topaz of one eighth (12.50%) of the working
interest through the tanks/sales line on all wells developed thereon, in a
manner consistent with the carrying obligation established in the Agreement. For
illustrative/example purposes, assuming Topaz/DHOPCO has 100% of the minerals in
a to-be-drilled tract leased, WI Purchaser shall pay for 35.15625% of the costs
of drilling/completion and receive 31.25% of working interest net revenues
(carrying Topaz for a 3.90625% working interest and an attributable 2.92968% net
revenue);
(b) WI Purchaser shall pay Topaz/DHOPCO the equivalent of the Base Acreage
Price for such working interest upon the execution of this Supplement by WI
Purchaser, calculated as follows:
736.562 acres X 31.25% X $1,050.00 = $241,684.41
Page 3 of 8
(c) The ultimate calculation of Present Additional Leasehold and any
leasehold to be purchased/sold hereunder is necessarily subject to final
determination by the parties and the results of final title analysis on all
included tracts within the Non-Tract One Acres.
(d) Upon the acceptance of the subscription of WI Purchaser hereunder,
Topaz/DHOPCO, on the one hand, and WI Purchaser, on the other hand, shall have
created between and amongst the parties (and otherwise agree to) an area of
mutual interest (an "AMI") within the Non-Tract One Acres, coupled with any
immediately-adjacent or contiguous tract thereto (although, at present, Topaz
has reason to believe and does believe that all such contiguous tract candidates
are presently leased or otherwise held by production under the terms of an
existing lease). In addition to the Present Additional Leasehold on such tracts,
and acting upon the lead and direction of Topaz, WI Purchaser and Topaz shall
have the right to participate in the acquisition of leases or interests in any
new leases taken by a party hereto on lands within the AMI in the following
proportions: WI Purchaser = 31.25%; Topaz = 68.75%. Any AMI leases obtained by
Topaz will be tendered for proportionate acquisition hereunder (a) at a net
revenue interest of 75.0%, and (b) at a price equal to the greater of the Base
Acreage Price or such acquisition costs (per acre) as Topaz may elect to pay for
the same. Any AMI leasehold presented by a party hereto shall be subject to the
option, but not the obligation, to participate hereunder on a proportionate
basis. Notwithstanding the source of any AMI leasehold generated, proposed or
acquired hereunder (i.e. from Topaz or WI Purchaser or their directives), the
same shall be subject to and burdened by WI Purchaser's carrying obligation in
favor of Topaz, as established above.
(e) Within forty five (45) business days of the execution of this
Supplement (if not sooner and in conjunction with the JOA contemplated by the
Agreement), DHOPCO and/or Topaz shall assemble and deliver unto WI Purchaser a
written Assignment of Oil, Gas and Mineral Lease involving the subject leasehold
acquired, coupled with such other and more definitive documentation as the
parties deem necessary and appropriate to reflect the agreement(s) contained in
this Supplement.
3. SUBSCRIPTION; ADDITIONAL DOCUMENTS.WI Purchaser hereby irrevocably
subscribes to purchase the subject thirty one and one quarter percent (31.25%)
of the Present Additional Leasehold, pursuant to and upon the terms and
conditions herein set forth. Accordingly, the WI Purchaser, upon its entry into
and the execution of this Supplement, hereby tenders the following:
(a) Two (2) executed counterparts of this Supplement, with pages initialed;
(b) An advancement in the form of either a check, cashier's check or money
order, payable to the order of "TOPAZ RESOURCES, INC.", or a bank wire transfer
to Topaz's account as directed in writing by Topaz, in the amount of
$241,684.41, to be applied by Topaz for the benefit of WI Purchaser in a manner
consistent with Paragraph 2 above; and
Page 4 of 8
(c) Such other executed and completed instruments (if any) as described and
as may be reasonably required in written correspondence presented to WI
Purchaser, directly or indirectly, by DHOPCO and/or Topaz as part of the
purchase hereunder.
Consistent with Paragraph 2(e) above, Topaz and DHOPCO shall tender to WI
Purchaser the following for execution by WI Purchaser:
(d) One (1) written Joint Operating Agreement (the "JOA"), to govern
operations on the WELL and the AMI leasehold, utilizing a modified and
supplemented AAPL Model Form Operating Agreement with included Accounting COPAS
attachment, such JOA to be consistent with DHOPCO's prior operations in and
around Montague County, Texas;
(e) One (1) executed and acknowledged Memorandum of Operating Agreement and
Financing Statement;
(f) One (1) proposed Assignment of Oil, Gas and Mineral Lease (to WI
Purchaser);
(g) Such other and additional documents which the parties may otherwise
deem necessary and appropriate to effectuate the terms of this Agreement and
facilitate the completion and production of the WELL.
4. ACCEPTANCE OF SUBSCRIPTION. WI Purchaser agrees that this subscription
(the "Subscription") is irrevocable and is subject to acceptance by DHOPCO and
Topaz, in their sole discretion. If not accepted by DHOPCO and Topaz, all
instruments tendered herewith shall be promptly returned, along with any monies
paid by WI Purchaser. WI Purchaser understands that acceptance of this
Subscription shall be signified by executing this Subscription Agreement and
causing an executed copy hereof to be returned to the WI Purchaser. DHOPCO and
Topaz have no obligation to accept this Subscription in its entirety or to
accept any third party Subscriptions (if any) in the order received. Further,
DHOPCO and Topaz may accept a Subscription hereunder notwithstanding an eventual
sale of all of the working interest offered to WI Purchaser or others. As soon
as practical following a closing hereunder, WI Purchaser will receive executed
counterparts and/or copies of executed closing documentation hereunder.
5. AFFIRMATION OF AGREEMENT PROVISIONS. By its execution of this
Supplement, WI Purchaser represents and agrees as follows: (a) the statements
contained in Paragraph 6, 7 and 8 of the Agreement remain true and correct as to
the WELL and, by ratification and reference hereunder, such statements remain
true and correct (and otherwise apply) as to WI Purchaser's acquisition(s) and
the working interest made the subject of this Supplement; (b) the
indemnification by WI Purchaser contained in Paragraph 9 of the Agreement is
ratified and adopted as to the transaction(s) contemplated by this Supplement;
(c) the "additional" or optional participation rights contained in Paragraph 10
of the Agreement are hereby waived and shall now be governed by the terms of
this Supplement; and (d) Paragraphs 11, 12 and 13 of the Agreement are hereby
Page 5 of 8
adopted and ratified as to the transaction(s) cited in this Supplement.
Notwithstanding the absence of a jurat or acknowledgment by WI Purchaser hereon,
the statements contained herein shall be deemed by WI Purchaser to be true and
correct, to be relied upon by DHOPCO and Topaz accordingly.
IN WITNESS WHEREOF, WI Purchaser has executed this Subscription Agreement
on this ____________ day of November, 2010.
WI Purchaser:
RMJ, INC., a Nevada corporation
By: /s/ Eric L. Moe
-----------------------------------------
Eric L. Moe, its CEO/President
Address: 8921 N. Indian Trail Road,
Suite 288
Spokane, WA 99208
E-mail address: emoe27@aol.com
Phone Number: (509) 467-8204
Fax Number: (509) 466-0583
EIN: 98-0165538
---------------------------------------
Witness
Printed Name:
--------------------------
WHEN FULLY EXECUTED, RETURN TO:
Dark Horse Operating Co., L.L.C.
Mailing Address: P.O. Box 2184, Denton, TX 76202-2184;
Physical Address: 1012 N. Masch Branch Road, Denton, TX 76207
Phone: 940-243-3038; Facsimile: 940-243-8643
E-mail: lindsayroberttx@msn.com and rstinnett@usa.net
Page 6 of 8
ACCEPTANCE BY DHOPCO and TOPAZ
The foregoing subscription is accepted/rejected by DHOPCO and TOPAZ as
follows:
_________ Accepted in full.
_________ Partially accepted to the extent of ___________
working interest (if needed, explain: __________________
______________________________________________________________
_________ Rejected in full.
DATE:_______________, 2010.
Dark Horse Operating Co., L.L.C.,
A Texas limited liability company
By: /s/ S. Rand Stinnett
---------------------------------------------
S. Rand Stinnett, its Manager
By: /s/ Robert P. Lindsay
---------------------------------------------
Robert P. Lindsay, its Manager
Topaz Resources, Inc.,
A Florida corporation
By: /s/ Edward J. Munden
---------------------------------------------
Edward J. Munden, its President
By: /s/ Bill A. Williamson
---------------------------------------------
Bill A. Williamson, its Vice President
Page 7 of 8
EXHIBIT "A" TO
SUPPLEMENTAL
SUBSCRIPTION AGREEMENT
FOR
BROWNING #2 WELL/UNIT and
BROWNING LEASE
(Montague County, Texas)
Between
TOPAZ RESOURCES, INC. and
DARK HORSE OPERATING CO., L.L.C.
AND
RMJ, INC.
Page 8 of 8